Sale saves California hospital from closing

For-profit provider AHMC Healthcare has finalized the purchase of two California hospitals from Verity Health System, a bankrupt system based in El Segundo, Calif, according to Mercury News

The two hospitals, Seton Medical Center in Daly City, Calif., and Seton Coastside in Moss Beach, Calif., were sold for $40 million. 

The sale became final last week, months after Verity Health System’s bankruptcy and a failed deal threatened to close the Daly City hospital. 

The deal for the two hospitals was conditionally approved by California Attorney General Xavier Becerra July 27. Some of the conditions include that AHMC will keep the hospitals open at least five and a half years. In addition, AHMC will need to offer more than $1 million in charity care for the surrounding community in the next six fiscal years. 

As part of the charity care requirement, Mr. Becerra said AHMC needs to cover in full care for people who are uninsured or earn at or below 250 percent of the federal poverty level. 

Verity Health, which entered Chapter 11 bankruptcy in 2018, reached a deal to sell the two hospitals in April. 

AHMC Healthcare is a Southern California-based integrated health system. 

More articles on healthcare transactions:
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Feds sue to block Geisinger’s partial acquisition of 132-bed hospital
6 hospital deals canceled, delayed


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